Ousted SF official was paid by nonprofit whose contracts she approved

A former San Francisco department head, now at the center of a city scandal, was paid by a nonprofit within months of signing a six-figure contract for the organization, in a possible violation of state law.



Sheryl Davis, who led the city’s Human Rights Commission <a href="http://v/">until her September resignation</a>, received the payments in 2021 from the nonprofit Collective Impact, according to internal financial documents obtained by The Standard.&nbsp;



Davis signed off on funding totaling $1.5 million for the group, which is led by James Spingola, with whom she <a href="https://develop.sfstandard.com/2024/09/12/san-francisco-dream-keeper-initiative-sheryl-davis-james-spingola-nonprofit/">shared a home</a>.



The revelation is the latest twist in a burgeoning City Hall scandal that has put Mayor London Breed’s flagship program for the Black community, the <a href="https://www.dreamkeepersf.org/">Dream Keeper Initiative</a>, under the microscope over allegations of misspending and a swirl of ethical questions. The documents obtained by The Standard are the latest example of potential misconduct at the center of a growing city probe — and represent the first evidence of money flowing from a Dream Keeper recipient to a city official.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="2668" height="2669" src="https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1101-humanrights-231006-edited.jpg?w=2500" alt="A smiling man and woman stand together against a vibrant, colorful flower wall. The woman wears a red sleeveless top, and the man wears a blue shirt with white leaf prints." class="wp-image-311070" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1101-humanrights-231006-edited.jpg 2668w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1101-humanrights-231006-edited.jpg?resize=150,150 150w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1101-humanrights-231006-edited.jpg?resize=300,300 300w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1101-humanrights-231006-edited.jpg?resize=768,768 768w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1101-humanrights-231006-edited.jpg?resize=2500,2500 2500w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1101-humanrights-231006-edited.jpg?resize=1536,1536 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1101-humanrights-231006-edited.jpg?resize=2048,2048 2048w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1101-humanrights-231006-edited.jpg?resize=180,180 180w" sizes="auto, (max-width: 2668px) 100vw, 2668px" /><figcaption class="wp-element-caption">Davis and James Spingola attend the San Francisco Human Rights Commission Reception in October 2023.</figcaption></figure>



In 2021, Davis received $5,179 in payments from Collective Impact, the documents show. The payments were marked as reimbursements for software subscriptions and other expenses, including items from the hardware store Lowe’s. <a href="https://www.fppc.ca.gov/content/dam/fppc/NS-Documents/LegalDiv/The%20Political%20Reform%20Act/2024-pra/2024_Act_highlighted.pdf">State ethics law</a>, which treats reimbursements as a form of income, prohibits officials from making decisions <a href="https://www.fppc.ca.gov/learn/conflicts-of-interest-rules.html">involving entities from which they received</a> income of more than $500.



&#8220;It&#8217;s fair to say that these payments raise red flags,&#8221; said Sean McMorris, an ethics expert from the government transparency nonprofit Common Cause.



One set of payments came three months before Davis signed a $575,000 contract for Collective Impact, and the second set came about six weeks after.



Davis’ attorney Tony Brass acknowledged that his client received payments from Collective Impact, adding that his client did not believe that the reimbursements she received counted as income.&nbsp;



Davis was Collective Impact’s executive director before leaving in 2016 for her city job.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1649" height="1308" src="https://content-develop.sfstandard.com/wp-content/uploads/2024/10/collective-impact-finances.png?w=1649" alt="The image shows a financial document titled &quot;Collective Impact&quot; with entries for &quot;Sheryl Davis&quot; and &quot;Zoom.&quot;" class="wp-image-318390" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2024/10/collective-impact-finances.png 1649w, https://content-develop.sfstandard.com/wp-content/uploads/2024/10/collective-impact-finances.png?resize=300,238 300w, https://content-develop.sfstandard.com/wp-content/uploads/2024/10/collective-impact-finances.png?resize=768,609 768w, https://content-develop.sfstandard.com/wp-content/uploads/2024/10/collective-impact-finances.png?resize=1536,1218 1536w" sizes="auto, (max-width: 1649px) 100vw, 1649px" /><figcaption class="wp-element-caption">A screenshot of a financial document obtained by The Standard shows payments sent from Collective Impact to Davis.</figcaption></figure>



&#8220;If it was negligence, then she should explain that. If she doesn’t think anything is wrong, then she should explain that,” said McMorris. “If it is willful intent, then the prosecution and penalties would be much higher. &#8230; On its face, I don’t see how it doesn’t apply to the conflict-of-interest code.”



Brass said the payments Davis received from Collective Impact stemmed from advocacy work she did for MegaBlack, an informal group that discusses issues affecting San Francisco’s Black community. Collective Impact was MegaBlack’s fiscal sponsor, the attorney said.



Davis was a private consultant for MegaBlack, Brass noted, adding that the work was outside of her role as head of the Human Rights Commission. She coordinated with a private firm to work on MegaBlack’s website and social media.&nbsp;Requests for comment sent to MegaBlack were not returned. 



&#8220;She has been very candid about everything that happened during her time at HRC,” Brass said.&nbsp;



The Human Rights Commission, the mayor’s office, and the controller’s office declined to answer questions about The Standard’s findings, citing ongoing investigations. Spingola and other members of Collective Impact’s staff and board did not reply to a list of questions.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1564" height="1043" src="https://content-develop.sfstandard.com/wp-content/uploads/2024/07/dreamkeeperinitiative_03.jpg?w=1564" alt="Three people stand on a stage with the words &quot;Dreaming Forward&quot; in the background." class="wp-image-287850" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2024/07/dreamkeeperinitiative_03.jpg 1564w, https://content-develop.sfstandard.com/wp-content/uploads/2024/07/dreamkeeperinitiative_03.jpg?resize=300,200 300w, https://content-develop.sfstandard.com/wp-content/uploads/2024/07/dreamkeeperinitiative_03.jpg?resize=768,512 768w, https://content-develop.sfstandard.com/wp-content/uploads/2024/07/dreamkeeperinitiative_03.jpg?resize=1536,1024 1536w" sizes="auto, (max-width: 1564px) 100vw, 1564px" /><figcaption class="wp-element-caption">Former Dream Keeper Initiative Director Saidah Leatutufu-Burch, Mayor London Breed, and Davis attend an event in 2023.</figcaption></figure>



In another sign of close entanglements between Davis and Collective Impact, the nonprofit maintained a credit card in Davis&#8217; name from at least September 2020 to March 2024.&nbsp;



Brass said Davis had not used the card since leaving the organization in 2016.&nbsp;



In addition to her position at the Human Rights Commission, Davis was a lead decision maker for the Dream Keeper Initiative. Breed launched Dream Keeper in collaboration with Supervisor Shamann Walton and other city leaders in July 2020 to redirect funds to economic and cultural development in Black communities.&nbsp;



Since then, city leaders have budgeted nearly $300 million for the program, and about $140 million has been spent, according to the controller’s office.



After The Standard revealed close personal ties between Davis and Spingola, and a San Francisco Chronicle <a href="https://www.sfchronicle.com/sf/article/marthas-vinyard-rental-questions-spending-19743302.php">story</a> exposed problematic financial management at the Human Rights Commission, Breed asked Davis to resign.



With scrutiny of the program growing, Breed has paused Dream Keeper Initiative funds, and the city has launched a series of audits of the Human Rights Commission.



Spingola continues to lead Collective Impact and is still a commissioner on the San Francisco Juvenile Probation Commission.



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MegaBlack, the group tied to the payments Davis received from Collective Impact, describes itself as “fighting for visibility, sovereignty, dignity and justice for Black San Franciscans.” Its website does not list its members but says the group has helped draft local legislation, advocated for reparations, and hosted cultural and culinary events.&nbsp;&nbsp; MegaBlack coordinated a rally last month <a href="https://develop.sfstandard.com/2024/09/14/dream-keeper-mega-black-sf/">decrying media coverage</a> of the Dream Keeper Initiative as unfair attacks on an essential program for the Black community.

Top official resigns in nonprofit scandal; Breed plays defense

Sheryl Davis, head of San Francisco&#8217;s embattled Human Rights Commission, resigned Friday morning after The Standard raised questions about spending for the Dream Keeper Initiative, a program she led.



On Thursday, The Standard reported that Davis had signed off on $1.5 million in contracts toward a nonprofit executive <a href="https://develop.sfstandard.com/2024/09/12/san-francisco-dream-keeper-initiative-sheryl-davis-james-spingola-nonprofit/">with whom she shared a home</a> while never disclosing the relationship to the city. When presented with evidence of the connection, the mayor&#8217;s office said Thursday that Davis was on leave.



The Standard learned Friday that Davis is being represented by a criminal defense attorney, Tony Brass, <a href="https://oaklandside.org/2024/06/24/oakland-mayor-attorney-tony-brass-fbi/">who briefly served</a> as a lawyer for Oakland Mayor Sheng Thao after the FBI raided the city leader&#8217;s home.



&#8220;Ms. Davis has submitted her resignation, effective immediately, and will fully cooperate with any investigation,&#8221; Brass wrote in a statement. &#8220;She has always prioritized service and commitment to her community, and will continue to do that now.&#8221;



The mayor&#8217;s office announced Friday that Mawuli Tugbenyoh, a staffer at the Department of Human Resources, would serve as acting director of the Human Rights Commission.



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The Dream Keeper Initiative, which has directed tens of millions of dollars toward the city&#8217;s Black communities each year, was a flagship project of Mayor London Breed. It was first conceived in 2020 after the murder of George Floyd. 



In recent months, however, the program has been dogged by questions about transparency and whether funds were spent appropriately. The Standard reported in July that, among other issues, millions in funds allocated to the Dream Keeper Initiative <a href="https://develop.sfstandard.com/2024/07/22/san-francisco-dream-keeper-intiative-black-community-whistleblower/">had gone unspent</a>, while some of the initiative&#8217;s partners had spent money in ways that raised eyebrows among city officials.



Board President Aaron Peskin, who has called for both internal and third-party investigations into the scandal, said in an interview with The Standard, &#8220;Everything tells me this goes all the way to the top. To London Breed herself. And I don’t say that lightly.&#8221;



The Standard’s investigation found that Davis approved contracts for the nonprofit Collective Impact, run by James Spingola, without notifying City Hall about their relationship. In addition to sharing a home address, Davis co-owns a car with Spingola. The arrangement appears to violate city rules requiring disclosure of personal relationships with recipients of city funding. 



Spingola, who has led Collective Impact since 2020, was appointed by Breed to the Juvenile Probation Commission. The mayor&#8217;s office said Friday it did not have any updates about Spingola&#8217;s role at the commission.



On Thursday morning, The Standard asked Breed at a downtown event whether she had known about Davis’ connection with Spingola.



“I will be finally answering your question, but not right now,&#8221; Breed said. When pressed on the matter, Breed replied, “No means no. At another time.”



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="2334" height="2334" src="https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1341-thegraduates-230605-edited.jpg?w=2334" alt="A smiling man in a black puffer jacket and jeans stands next to a smiling woman in a green coat in an ornately decorated room with arched doorways in the background." class="wp-image-311068" srcset="https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1341-thegraduates-230605-edited.jpg 2334w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1341-thegraduates-230605-edited.jpg?resize=150,150 150w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1341-thegraduates-230605-edited.jpg?resize=300,300 300w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1341-thegraduates-230605-edited.jpg?resize=768,768 768w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1341-thegraduates-230605-edited.jpg?resize=1536,1536 1536w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1341-thegraduates-230605-edited.jpg?resize=2048,2048 2048w, https://content-develop.sfstandard.com/wp-content/uploads/2024/09/1341-thegraduates-230605-edited.jpg?resize=180,180 180w" sizes="auto, (max-width: 2334px) 100vw, 2334px" /><figcaption class="wp-element-caption">James Spingola, left, and Sheryl Davis, now the former executive director of the Human Rights Commission, have shared an address since at least spring 2021, according to voter records.</figcaption></figure>



Collective Impact did not respond to a request for comment. One former board member who spoke on the condition of anonymity said she was &#8220;very surprised&#8221; by the revelations, calling Spingola &#8220;an amazing human.&#8221;



&#8220;No one ever knew that anything other than aboveboard behavior was happening,” said the former board member. &#8220;If I was still on the board, I would want to have a third-party investigation to really understand what happened.”



On Friday, Black leaders rallied outside City Hall and decried media coverage of the Dream Keeper Initiative that they said overwhelmingly focused on the program&#8217;s flaws rather than its many successes.



&#8220;They are going after to dismantle [Dream Keeper Initiative],&#8221; said Phelicia Jones, founder of Wealth and Disparities in the Black Community. At the same time, Jones and others advocated for increased transparency from the program, with Jones calling for an audit.



&#8220;We want to know where is our money and how was it spent,&#8221; Jones said.



Tugbenyoh, who was informed about the change of leadership in a call from the mayor&#8217;s office, said the appointment was &#8220;a bit unexpected.&#8221; He said the Human Rights Commission does important work, and that he plans to create more oversight to &#8220;rebuild the public&#8217;s trust in how those dollars are spent.&#8221;



&#8220;I know that he’s well prepared to handle the complexities of heading up the department,&#8221; said state Controller Malia Cohen of Tugbenyoh, who formerly worked for her as an aide.



Asked about the scandals surrounding the Dream Keeper Initiative, Cohen said,&nbsp;“I think everyone has to pay close attention to how every tax dollar is spent.&#8221;

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